UK food supply chain firms announce merger

20 November 2007
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20 November 2007 | Antony Barton

Two UK food and drink logistics firms are to merge at the end of the year.

Culina Logistics and Baylis Logistics will form Culina Logistics Limited, with effect from 1 January 2008. The merged company will be partly owned by investment firm TML Invest, which is in turn owned by the head of Culina's parent company Müller. Other owners will include directors of the two firms.

A spokesman for Culina told Supplymanagement.com that because Culina specialises in storing and transporting chilled goods and Baylis focuses on goods stored at room temperature, the merger will help buyers who order from both sectors.

He said the company will be able to combine orders more effectively, so buyers receive fewer deliveries. The integration of both firms' IT services will allow better online data for customers, showing the location and arrival time of all goods. This should help cut buyers' administration, improve inventory control and reduce associated costs.

Thomas van Mourik, MD of Baylis and soon to be CEO of the merged company, said in a statement: "The transition from two organisations to one will be gradual and smooth. We have the capacity, flexibility, resources and financial clout to deliver unbeatable supply chain solutions to the food and drink industry."

The new company will have a combined turnover of £125 million. It will employ 1,300 people, operate from nine sites and have a fleet of 250 vehicles and 550 trailers.

SMnov2007

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